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Informist, Wednesday, Mar. 4, 2026

 

--India Feb services PMI 58.1 vs 58.5 in Jan 
--India Feb composite PMI 58.9 vs 58.4 in Jan 
 

NEW DELHI – India's services sector activity moderated in February because of slower demand and higher inflation, S&P Global said Wednesday. The HSBC India Services Purchasing Managers' Index eased to 58.1 last month from 58.5 in January.

 

At 58.1, the final services purchasing managers' index for February was lower than the flash estimate of 58.4 that was released Feb. 20. A purchasing managers' index reading of more than 50 denotes expansion in activity from the previous month, while a print below 50 indicates contraction.

 

"Output growth across India's service economy was broadly stable heading towards the end of the current fiscal year, despite new orders rising at the slowest pace since January 2025," S&P Global, which compiles the purchasing managers' indices, said in a release. "Encouragingly, there was a notably stronger upturn in international sales and firms hired staff to a greater extent than in January."

 

The composite purchasing managers' index rose to 58.9 in February from 58.4 in the previous month, reflecting better performance of the manufacturing sector. Data released Monday showed India's manufacturing purchasing managers' index rose to a four-month high of 56.9 in February from 55.4 in January.

 

Growth in business activity of services firms was underpinned by efficiency gains, favourable underlying demand, rising sales, and technology projects. While new order intakes rose sharply in February, the pace of expansion fell to a 13-month low. Some companies cited higher competition for slower growth during the month, S&P Global said.

 

India's services sector grew 9.5% in the December quarter, according to government data released Friday, higher than the GDP growth of 7.8% during the quarter.

 

Finance and insurance led the rise in output and new orders in February even as growth slowed in both sectors. One area of outperformance was exports, as services firms reported gains from Canada, Germany, mainland China, Singapore, the United Arab Emirates, the UK, and the US. On average, international sales expanded at the fastest pace since August, S&P Global said.

 

Operating expenses for Indian services firms rose at the quickest pace in two-and-a-half years, with the rate of inflation edging above its historical average, S&P Global said. According to firms surveyed, cooking oil, eggs, meat, and vegetables were the main source of cost pressures in February. Firms also saw greater outlays on energy, labour, and commodities.

 

"Similarly, prices charged for the provision of services were raised to the greatest extent in six months. Here, too, the rate of inflation was historically elevated," S&P Global said. "Monitored companies suggested that additional cost burdens had been transferred through to clients."

 

Service sector firms were confident of securing new orders and saw business activity rising over the coming 12 months. "Besides marketing initiatives, concerted efforts to broaden scope and presence across existing and new markets boosted optimism. The overall level of positive sentiment climbed to a one-year high," S&P Global said.  End

 

Reported by Shubham Rana

Edited by Rajeev Pai

 

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